Department of Insurance agrees to automobile insurance increase

RALEIGH — North Carolina Insurance Commissioner Mike Causey recently announced a settlement with the North Carolina Rate Bureau that will limit the increase in automobile insurance rates.

Under the settlement, North Carolina drivers will see an average statewide increase of 5% in automobile insurance premiums, significantly lower than the 22.6% hike originally requested by the Rate Bureau in February. The increase will take effect on new and renewed policies on and after Oct. 1. The agreement also includes a substantial average 16.3% decrease in motorcycle liability insurance rates.

"With factors such as distracted driving, excessive speeding and increased automobile repair costs putting upward pressure on insurance rates, I am happy that we were able to hold the average increase to 5%," Commissioner Causey stated in a press release. "I'm also glad that the agreement will keep North Carolina's average automobile premiums among the lowest in the nation."

The N.C. Rate Bureau, which represents more than 100 insurance companies writing auto policies in the state, is independent of the Department of Insurance. The requested rate increase was filed on Feb. 3.

This settlement follows a separate homeowners insurance rate agreement reached earlier this year between the Department of Insurance and the Rate Bureau. The bureau's previous rate filing in 2023 ultimately resulted in a settlement that led to an overall average 4.5% increase per year for two years.

Statewide, the homeowners insurance settlement sets an average increase of 15% over two years and prohibits the Rate Bureau from requesting another increase before June 1, 2027.

Any insurance company that writes homeowners or personal automobile insurance policies in North Carolina must be a member of the Rate Bureau, which negotiates rates with the state on behalf of its members.